Club Penguin has been noted as sharing similarities with other popular browser-based online environments such as RuneScape and Habbo Hotel, such as the use of an in-game currency to purchase virtual items and pets, named "puffles".

The game is specifically designed for players within the ages of 6-14, thus child safety is a vital responsibility of the game's developers.

The game was founded by Lance Priebe, and co-founded by Lane Merrifield and Dave Krysko. It is now estimated that over 200 million people worldwide play the game, which was originally built on a Smart Fox Server.